Daimler Truck: Is it worth buying after the numbers and the stock plunge?

Last Updated: 8. November 2023By

The earnings season is still in full swing. Some impress, others disappoint. Often the stock price quickly reflects this. But not all market reactions are justified, as you surely know.

For example, in my opinion, the correction at Daimler Truck after the numbers. Let’s take a look at the results:

Decline in sales could be cushioned Daimler Truck was able to generate more revenue and operating profit in the third financial quarter despite a slight decline in sales.

In the reporting period, the world market leader in heavy trucks sold around 129,000 vehicles, 5% less than in the previous year.

Specifically, the adjusted operating profit from July to September amounted to 1.34 billion euros, an increase of 5% compared to the same period last year. The truck manufacturer’s revenue rose by 3% to 13.9 billion euros in the same period. This was due, among other things, to bottlenecks of some suppliers.

Overall, Daimler Truck’s profit fell slightly to 957 million euros.

Daimler Truck looks ahead optimistically According to CEO Martin Daum, the near future looks rosy anyway, as he emphasises with a view to the financial year:

„Despite a volatile environment, we confirm our forecast for the full year 2023 and expect a record result for Daimler Truck“.

This year, the group is aiming for revenue of 56 to 58 billion euros (51 billion euros in the previous year). Sales are expected to increase by around 5%, with up to 550,000 trucks. There is also talk of cost-cutting measures to remain successful in the future.

Daimler Truck share under pressure after numbers Overall, Daimler Truck impressed with its good figures. The market apparently perceived this differently and sent the share price on a downward trend, as you can see in the chart.

Overexaggerated punished: Daimler Truck continued to be under pressure after the results were presented My conclusion for you The share is attractively valued – especially after the price decline of recent weeks. Analysts are raising their thumbs in succession and partly increasing their price targets.

Also interesting: a dividend yield of around 6%! And to the delight of dividend hunters, it is Daimler’s goal to pay a regular dividend to its shareholders. For 2022, 1.30 euros per share were paid out for the first time. For 2023, around 1.70 euros are expected. A passive income for you that can be seen.

At the moment, you are getting a good deal on the DAX share to position yourself in the long term.